Employee car lease
An employee car lease allows employers to structure an employee’s salary package smartly as lease payment is made by the employer from the pre-tax income of the employee, thereby reducing the taxable income. A lower taxable income = a lower payable tax and a higher take-home salary. Such salary packaging helps employers to attract new talent and retain existing ones.
How it works
Contrary to paying for the entire cost of the car to own it, an employee car lease allows employees to use the car for the contracted tenure and mileage by paying affordable monthly lease rentals only towards the usage of the car, i.e. the depreciation value of the car + any services opted for and return the car at the end of the contract.
This is a long-term lease with the lease period ranging from a minimum of 12 months up to 60 months.
Master Lease Agreement
To get employers onboarded, a Master Lease Agreement is signed between the employer and Ayvens for providing cars on operational lease and fleet management services, if opted for. Under this arrangement, the corporate takes the cars on lease from Ayvens for its employee for the duration of his/her employment.
After signing the MLA, a Vehicle Lease Contract is executed between Ayvens and the Registered Owner, which is the corporate in general bi-party employee car lease. The car registered in the name of the corporate is assigned to an individual and not a role and is ordered as per the employee’s specification (subject to eligibility defined by the employer). Employees get to drive cars with a white (private) registration number plate.
Employees opt-in and drive
Employees can simply opt for the lease programme and drive home a brand-new car without the hassle of credit check, down payment or resale worries.
Employee car lease comes bundled with insurance and 24x7 emergency roadside assistance. We manage the purchase, claim management as well as renewal of insurance. Employees have the option to contract for maintenance, door-to-door pick-and-drop service and a stand-by car.